By Eurasia Business News – November 21, 2020
LVMH Moët Hennessy Louis Vuitton commonly known as LVMH, is a French multinational corporation and conglomerate specializing in luxury goods, headquartered in Paris, France.
As luxury industry has returned to its peaks on the stock market for a few sessions, following the announcements of the scientific research progress on anti-covid-19 vaccines, LVMH stock price is back on record levels at 492.55 euros on Friday at close 5:37PM CET, up 0.8%. The group’s capitalization reached 248.51 billion euros on the Paris stock exchange CAC40.
The file had been particularly sought at the end of October after the announcement in November 2019 of a merger agreement with Tiffany to buy the iconic U.S. jewellery maker. The price of the tender offer was reduced from 135 to 131.50 dollars per share, allowing LMVH to save about 430 million dollars, or about 3% of the initial purchase price of some 16 billion dollars. The other terms of the proposed merger remained unchanged and the announced agreement put an end to all legal actions opposing the Louis Vuitton owner and Tiffany before the Delaware Court.
Roger N. Farah, Chairman of the Board of Directors of Tiffany, commented :
“We are very pleased to have reached an agreement with LVMH at an attractive price and to now be able to proceed with the merger. The Board concluded it was in the best interests of all of our stakeholders to achieve certainty of closing.”
Bernard Arnault, President and CEO of LVMH, commented:
“This balanced agreement with Tiffany’s Board allows LVMH to work on the Tiffany acquisition with confidence and resume discussions with Tiffany’s management on the integration details. We are as convinced as ever of the formidable potential of the Tiffany brand and believe that LVMH is the right home for Tiffany and its employees during this exciting next chapter.”
LVMH stocks price progressed on October 29 after having reached an agreement with Tiffany to buy the American jeweller.
Analysts see the transaction as positive in the long term as it will allow LVMH to grow in the attractive watch and jewellery industry. The strength of LVMH group lies in its Fashion and Leather Goods division, which should still represent around two thirds of its EBIT after the merger operation with Tiffany.
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